Zambia's CEC delays plan to cut power supply to mines - sources

LUSAKA, July 31 (Reuters) - Zambia's power supplier
Copperbelt Energy Corp. (CEC) has delayed a plan to
reduce electricity to mines after mining firms warned they would
have to close processing plants and shed jobs, industry sources
said on Friday.

Zesco Ltd., the main power generating firm in Africa's No. 2
copper producer, is limiting supplies after water levels at its
hydro-electric plants fell due to drought.

CEC buys electricity from Zesco in bulk and sells it to
mining companies including the local units of Vedanta Resources
, Glencore and Vale.

On Thursday, CEC told mining firms it would reduce power
supply by 30 percent to mines from Friday.

"Power supply has not been reduced," an industry source
said. "Mining companies yesterday made a very serious
presentation to the government, Zesco and CEC that reducing
supply as planned would lead to closures of processing plant and
job cuts."

CEC officials were not immediately available to comment.

Canada's First Quantum Minerals on Monday shut its
Sentinel copper processing plant after Zesco reduced electricity
supply to its operations by 24 percent.

Chief executives of mining companies were due to meet on
Friday to plan how their firms would reduce their own
electricity demand, another industry source said.

"The idea is to put in place a power rationing plan that
will not seriously disrupt operations and undermine safety," the
source said.
(Reporting by Chris Mfula; Editing by James Macharia)